Where Product/Market Fit Breaks Down

Bryan Stolle
, ContributorI write about building businesses.Opinions expressed by Forbes Contributors are their own.

A tweet from GrowthHackers caught my eye recently -- “Our #product market fit and NPS are off the scale, but we're struggling to grow. Any ideas why?”

Like most tools in a well-stocked tool chest, a specific tool is only good for a specific problem or use. Product/market fit is no different. It’s not a panacea for getting products right, where “right” is defined as commercially viable and successful. The product is only one piece of the puzzle, and many entrepreneurs are surprised by how many other pieces impact their products’ market success.

So let’s run down the potential causes for the “why are we struggling” question posted on GrowthHackers:

1. You have happy ears – You don’t actually have a good product/market fit. It’s one of the many frustrating realities of product marketing, but what customers say they want, and what they actually want or will accept aren’t always the same. Many, many consumer products, from cars to movies, have been launched following extensive consumer testing, and flopped badly. Getting product/market fit right is part research, and part really knowing your customers and the problem you’re addressing. And being a very, very active listener, and your own worst (best?) critic.

Forbes Article by Bryan Stolle

2. It’s a tiny market – Niche marketing can be a great idea, but the smaller the niche, the more market share you need to have, to build a viable business. The smaller the market, the less sales in any given period, all other things equal. It’s a fine balance between a large enough market TAM in which you can build a successful company, and a small enough focused targeted SAM that you can generate sales with affordable customer acquisition costs (CAC).